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Research and Markets: The Mexican Frozen Food Market Has Increased Rapidly Over Recent Years, With 2006 Sales Estimated at Over US$1bn

Posted on: Tuesday, 11 March 2008, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c85332) has announced the addition of Mexico Food & Drink Report Q1 2008 to their offering.

The Mexico Food & Drink Report provides independent forecasts and competitive intelligence on Mexico's food and drink industry.

The Mexican frozen food market has increased rapidly over recent years, with 2006 sales estimated at over US$1bn. Sales growth, forecast to average around 13% per annum (pa), is driven by rising disposable incomes, increasing ownership of refrigerators and microwaves, busier lifestyles, leaving less time for meal preparation, and changing consumer tastes.

Until the 1990s, frozen food was considered to lack freshness and taste, even among consumers able to afford it. New freezing technologies and manufacturers' marketing and advertising efforts have over recent years changed this perception, with younger urban consumers in particular having changed their opinion. According to data published by the Mexican Institute of Statistics, Geography and Informatics (INEGI), around 17mn households owned refrigerators in 2006.

Demand does, for the time being, remain mainly concentrated in large cities, including Mexico City, Monterrey, and Guadalajara, where the majority of Mexico's middle and upper class consumers, which account for around 25% of the overall population, live. Sigma Alimentos is the leading domestic producer, followed by Grupo Bimbo, Nestlé Mexico and Corporativo Unilever. The market is, however, characterised by a large number of imported products, mainly from the US, which benefit from North American Free Trade Agreement (NAFTA) rules. Significant imports also come from Canada, Chile, and Spain. Sales are mainly via mass grocery retail outlets, with the leading Mexican operators having significantly increased their in-store freezer space over recent years. This has meanwhile also extended to smaller convenience stores, which have installed freezer cabinets in response to growing consumer demand for convenient and easy-to-prepare frozen ready meals.

Within the frozen food sector, the most important product categories are baked goods, meat products, fish products, vegetables, snacks, heat-and-serve Mexican and Italian dishes, ice cream and frozen desserts.

Strongest growth is recorded for the frozen snack foods sector for reasons of convenience, and frozen vegetables, in line with consumers' increasing health consciousness.

With disposable incomes further increasing, the sector has strong potential for further growth, and a variety of new and innovative products is being launched on a regular basis. At the same time, Mexican mass grocery retailers (MGRs) continue to improve shelf display and space available for frozen food products, making it easier for consumers to appreciate the whole variety of products available and thus creating potential for further sales growth.

For more information visit http://www.researchandmarkets.com/reports/c85332.

Source: Business Monitor International

Source: Business Wire

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